Strategic Planning: Johnson and Johnson
Choose a healthcare organization and share its vision, mission and values statements. Complete a SWOT analysis after determining a problem statement specific to a department or organizational issue. Stick to the data that is relevant to this problem when completing your SWOT. Create 2-3 high level goals from your data analysis. Conclude your analysis. Support your work with resources appropriate for this problem and organization.
To support your work, use your course and textbook readings and also use the South University Online Library. As in all assignments, cite your sources in your work and provide references for the citations in APA format.
Your initial posting should be addressed at 150-300 words. Submit your document to this Discussion Area by the due date assigned. Be sure to cite your sources using APA format.
Johnson & Johnson is a multinational firm founded in 1886 and deals with medical devices, medicines, and other consumer goods. Its corporate headquarters are in New Brunswick, New Jersey. In 2020, the company registered global sales of $82.6 billion. Some of the well-known company’s brands include pharmaceuticals and first-aid products, including Tylenol pharmaceuticals, baby powder, band-aid brand bandages, and contact lenses (Johnson and Johnson, 2021).
Vision, mission and value statements
The mission and vision statements of Johnson & Johnson both emphasize the company’s care and empathy for people. The company’s mission and vision are expressed in its credo, which states that “Patients, doctors, nurses, mothers and fathers, and everyone else who uses our products and services, we believe, are our first obligation. Everything we do to address their needs must be of the highest possible quality. We must always strive to provide value, decrease costs, and keep our prices low. Customers’ orders must be filled in a timely and accurate manner. Our business partners must be able to profitably operate.” As highlighted in its credo, the company’s values include growth and innovation, investing in the future, promoting global diversity, sustainability, cultivating diversity, and a global supply base (Johnson and Johnson, 2021).
A major challenge affecting the company is increased lawsuits against the company due to compromised products. This challenge limits the ability of the company to compete effectively in the market and to grow and expand to new markets. Based on this challenge, a SWOT analysis can help determine factors that can promote the growth or failure of the organization.
SWOT Analysis and Goals
The organization’s strengths include; research and development; 20.13% of the company’s gross profit in 2020 was spent on research and development, and in 2019 the company spent $11.35 billion on R&D. Since research and development is an integral part of medical discovery in healthcare industries, the large R&D expenditure is a major strength. Last year the company made $80.86 billion in revenue, which is 66.25% higher than its closes competitor Pfizer, which earned $48.65 billion in the same year. The company’s revenue stream gives it a competitive advantage over its closest competitors in the industry. Products, the company deals in a wide range of products and thus comprise in one product is not likely to have a major impact on its operations (Johnson and Johnson, 2021).
The organization’s weakness includes unethical practices; the corporation was found guilty of releasing false and deceptive information and employing harmful marketing practices for opioids by a judge in Oklahoma. This can negatively impact its reputation in the market. Uneven revenue distribution, J & J 50.7% of the company’s revenue is generated from the pharmaceutical business, and immunology-related products comprise 32% of all revenue generated by pharmaceutical. Three major products drive the immunology sales; hence the company’s revenue is dependent on a few products, which is a major weakness for the business.
The opportunities for this organization include the One-dose vaccine; while other competing vaccines require two doses, J & J requires a single dose, which is a lucrative opportunity as the company can earn more than its competitors. Tele-health, the sector, has rapidly gained popularity during the pandemic period and has been adopted by most people; thus, it provides an opportunity for the company to grow and reach more people. Mergers and acquisitions, the company should focus on mergers and acquisitions of competing companies to broaden its portfolio (Johnson and Johnson, 2021).
Threats to the organization include lawsuits; the company has been charged with several lawsuits, threatening its reputation in the market. Government regulations have increased, thus acting as a threat, as they regulate how much it can charge for their products. Competition from other healthcare organizations threatens the growth of the company into new regions (Johnson and Johnson, 2021).
From the analysis, some of the goals would be to improve the quality of the products to avoid unnecessary lawsuits which damage the company’s reputation. The company also needs to diversify its product to reduce its reliance on immunology-related products and attract new markets.